How TMT Will Drive Content Innovations
By Jeana Chaffin, Director AT&T Developer Program and Foundry Marketing
Lately, you may have heard the “TMT” industry referenced in the news, but what exactly does it entail, and where is it headed? Let’s take a look at this broad industry starting with a definition.
As defined by Investopedia, Technology, Media & Entertainment, and Telecommunications (TMT/TMET) is an industry sector used by investment bankers, investors, traders, and other market participants. Because it contains new and high-tech firms, this sector tends to experience a large number of mergers, acquisitions, and IPOs. You’ll find that it has a broad range of sub-sectors and companies within it, and thus it can be broken down many different ways, leading to slightly varying definitions. As just one example, the TMT sector can be defined to include:
- Semiconductor manufacturers
- Computer hardware makers, but also makers of server systems, mobile device handsets, tablets and storage devices such as hard drives and memory
- Internet companies
- Software makers
- Networking companies that maintain, install, and produce components for wired and wireless computer networks including fiber optic cable, switches, and routers
- Media companies developing, producing, and distributing multimedia content through TV, radio, in print, and online
- Entertainment companies including television networks, cable TV providers, production studios, and social media companies
And to make it even more difficult to define, various market participants often categorize different TMT companies in alternate sub-sectors. For instance, some may view Facebook as either Internet or media, and Apple as Internet, hardware, software and media. Other examples that cross sub-sectors are Hulu, Amazon, and Netflix. Plus, sometimes companies in one sub-sector of TMT will merge or acquire another to consolidate, diversify, and broaden its product offerings, for example, AT&T’s acquisition of DIRECTV.
While TMT is a large sector containing a wide variety of organizations, all of these companies have one thing in common – changing trends and evolving technological advancements are creating new opportunities in the space. Industry watchers and consumers are all quite interested to see how companies innovate and evolve.
The Role of Content in the TMT Industry
Consumer behaviors and content consumption patterns are changing. Thanks to wireless mobility, entertainment needs to be available virtually everywhere and whenever it’s wanted. This dynamic results in a need to rethink how and where to deliver content. For example, will new device form factors emerge for watching television and video on-the-go? How will anticipated 5G network deployments impact content creation and delivery?
There has been tremendous growth in the amount of content available to entertain ourselves and an increasing number of content players, but the consumer still remains in the driver’s seat. Innovative companies need to use technologies, like Machine Learning/Artificial Intelligence (AI) to make it easier and faster for consumers to find and decide which content they want. As companies analyze data about their customers’ behaviors, consumption patterns, and preferences, the ability to deliver more personalized content recommendations will be possible to help consumers decide what to watch.
Take for example a highlighted startup company, Screenz, in the AT&T Foundry’s Futurist Report on the Future of Entertainment. Screenz helps maintain relationships between content owners and audiences by managing and developing experiences that make content engaging. The platform utilizes real-time big data analysis to map the Entertainment DNA of each user, creating a personalized experience that provides valuable insights to clients and advertisers. Marquis customers include networks such as ABC, Univision, FOX, and Globo Brazil. Additionally, the analysis of customer data will allow advertisers to offer more targeted, personalized advertisements to individuals, for instance, even while different people are watching the same television show.
The Futurist Report on the Future of Entertainment also made a projection that in the future, media will be emotionally intelligent, in that recommendations and advertisements will be contextualized, going beyond recognizing personal behaviors and taking into account the mood that a person is in at a given time.
Technological evolutions, including reality computing (Virtual & Augmented Reality), 5G network deployments, and edge computing capabilities will continue to disrupt the ecosystem, resulting in new business models that must be flexible and creative to capture new growth streams. These models also must cultivate and offer innovative product offerings focused on connecting audiences with creative content, brands, and unique entertainment experiences.
What we’re seeing is that the convergence of technology with media and entertainment is indeed causing disruptive changes – and that’s good news for the future of the TMT sector and consumers.
In fact, according to Activate consulting firm’s annual Tech and Media Outlook 2018 report, by 2021 global Internet and media revenues will grow by approximately $300 billion across radio, recorded music, magazine and newspaper publishing, video games, filmed entertainment, book publishing, televeision subscription and licensing fees, internet access, digital advertising and traditional advertising on these platforms. So grab some popcorn and stay tuned, as that means great new content and experiences are coming our way.
Like this blog? Be sure to bookmark the SHAPE Blog page – next time, we’ll take a closer look into some of the factors changing the Media & Entertainment sub-section of TMT.